Indian MTNL is buying Zimbabwe’s TelOne through Mauritius unit

Indian telecoms company MTNL is considering buying a 51% stake in Zimbabwe’s TelOne, reported the Economic Times. The financing will be done through the company’s Mauritius unit, Mahanagar Telephone Mauritius (MTML).

TelOne, which is burdened with a large debt, is scouting for an overseas partner to explore the mobile sector.

The Economic Times of India quoted a senior MTNL executive familiar with the matter as saying: "The Zimbabwe government is keen to offload a 51% stake in TelOne, the country's sole state-owned landline operator. Since TelOne also has a GSM mobile permit, it fits well with our plans to enter the African cellular turf in the near future.”

MTNL will soon launch 200,000 lines as part of a GSM operation in Mauritius, for which it is expected to spend about $20 million. MTNL head Sanjay Garg said a deal in Zimbabwe would take place only after the GSM operation in Mauritius makes headway. GTB